St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-10-26
COSTLY DINNERS.
The Big Spreads Given Congress
men by the Pacific Lines.

SrltClk
men by the Pacific Lines.
NEW YORK. Oct. 25.-The Pacific rail-
way commission resumed its inquiries at
10 Wall street to-day. Its investigations
are about to close, and twas said by the
commissioners that probably the wit
neSSeS at this hearing would be the last
called. \ telegram from Gov. Stanford
was read in which he desired the ap-
pointment Of a court to inquire into the
equities existing between the govern
ment and the Central Pacific Effing-
ham Nichols, formerly treasurer of the
Central branch of the Central Pacific
railroad then known as the Atchison Il
Pixies Peak railroad, was the first wit
ness. He detailed the organization and
the construction of the first hundred
miles of the AtchiSon d Pixies Peak
railroad. He said he considered that
the road had a perfect right to CONSOLE
date with another road. and that its
grants of land should go to the road
into which it was merged. The witness
then explained the difficulties they
had experienced in trying to fulfill the
government requirements and had
finally found it impossible to fully carry
out the road. Only one-tenth of the
lands which were to be granted to them
by the government came to them. Com
missioner Anderson remarked that it
seemed impossible that road intended
to be run only 100 miles should be al
lowed to consolidate and run to the
Pacific. The witness replied that a
statute permitted the consolidation in
the consolidation with the AtchiSon,
Colorado d Pacific, among the contrOll-
ing powers were Oliver Ames, r. NJ.
Pomeroy. Erastus Corning, Chauneey
and Henry Willard, William C. Wet
more, John a. Stuart, Gov. William
Claim and A. S. Barnes. The road en-
plOyed, among many others. Thomas A.
Hendricks and Reverdy johnson, but
not when they were in office. Before
tue reorganization, when he came in.
400 first mortgage bonds were issued to
those previously i'll power, but he has
never been able to find the reason for it.
But this obligation was made condi-
tionaI when he and his friends went
into the company. Witness never re-
ceived any of the bonds. The books of
the construction of the road, known as
the Osborne books, were lost. Thomas
NJ. Lother attended to the diSburse-
mentS. No other money save the bonds,
the witness said, was disbursed except
for compensation. Witness said that no
bond nor dollar was distributed except
for return, but
BONDS WERE ISSUED
in consideration of loans. If $4,000 or
$4,000 was put into the company for
three CT four months bond would be
given i'll addition to the interest. About
Seventy-five bonds were so issued.
Then there were bonds for what were
known as ''eXiSting obligations" which
were not defined. Witness got four of
the bonds, as shown by the books. Gov.
Ames kept memorandum of the roads
transactions in a note book. Between
1870 and 1878 the road was in bad way
In 1879 the first mortgage bonds had to
be funded. When witness and his
friends resolved TO run the road to Den
Yer, Jay Gould stepped in and paid $3.50
per share for stock that was, according
to witness, of little value. Mr.. Nichols
said he believed that Mr.. Gould got his
information as to the roads intention
flung out of the different offices on the
road. After the sale was made, witness,
who conducted it, was paid S25, 600 for
legal services. When he went to Wash
ington in 1868 to see about the bill
for the relief of the Central branch,
MIR. Nichols interviewed the con-
gressmen. No money was given to con-
greSSmen, but some was expended in
dinners for them at the Arlington.
These were given for the purpose of
getting acquainted with the members
and talking about the bill. Between
January and July, 1870, S23, AL were ex-
pended for such incidental expenses.
William NJ. Evarts was paid a fee of
5000. Two items of 81, 900, which were
charged against him, Mr.. Nichols said,
were probably for
SOME POLITICAL OPERATIONS
of Mr.. Pomeroy. Mr.. Nichols said that
any differences from the books of the
Central branch to the effect that he had
not paid full value for all the stock
issued to him were incorrect. He had
paid first at the rate of $50 share, and
afterwards $40 share. The books show
that for 1,616 shares of stock issued at
one time, and 1919 shares at another, he
had only paid S62, 100 to the company
could not be right. He believes he had
901 shares of his own and 101 shares of
his fathers estate, part of which he
transferred to Oliver AmeS. Mr.. Nichols
said that he paid at the rate of 800 per
share OH such stock as he received.
The books upon which the accountants
of the commission had based their
figures must be wrong. He could not
understand why the books did not show
any payment by him for 1919 shares at
one time, nor could he explain why he
should pay its par value for stock about
January, 1879, when Gould was about
to buy in the stocks at $50 and while
the stock was selling as low as so cents
on dollar.
Commissioner Anderson astonished
the witness by asking him what had be-
come of Sl3l 900 charged against him on
the books. Witness thought it must
have been for counsel fees, dinners for
congressman and incidental expenses.
Witness Thought tha Central branch
was yet entitled to the government
lands 100 miles beyond the western ter
minus of the road. He did not believe
the fact that they had not carried their
road out that distance made any differ
ence. They had filed their maps and
were eXonerated from continuance of
the road. Mr.. Nichols believed that the
government should wipe out the accu